Within the past few years, many vehicle sharing and renting companies have emerged all through large cities in the world. Companies such as Car2Go and Zipcar have provided a value proposition that positively impacts both individuals and society as a whole. As discussed in class, the creation of this simultaneous benefit on both an individual and communal is referred to as shared value.

Both transportation companies has allowed its consumers a quick, cost efficient and very reliable method of passage, while concurrently reducing the amount of airborne pollutants displaced into the atmosphere, through the use of fuel efficient vehicles. A sustainable advantage is formed by the utilization of a shared value. This advantage has allowed both companies to generate profit and even develop and grow as time has passed.  For example, places such as the University of British Columbia have implemented the use of Car2Go stations on its premises in order to provide more accessible and environmentally friendly transportation. In closing, Car2Go and Zipcar are tried and true examples of companies that have used a socially and personally targeted value proposition in order to produce a competitive advantage and become profitable, while increasing the benefit of society as a whole.

Article available at:

http://www.entrepreneur.com/article/229712

Image available at:

http://operationsroom.files.wordpress.com/2013/01/zipcar.jpg

http://themarathonrelay.com/images/car2go.png

In 2011 Starbucks Corp. acquired Teavana, a chain of stores offering “boxed and loose tea and accessories,” in hopes to bring a new and fashionable vision of tea to the American consumer market. This new move places Starbucks in a new target market and offers an opportunity for growth in the company. While currently Teavana offers a limited amount of brewed teas, Starbucks plans to initiate a tactic that will bring further “ready to go,” products to stores. These new developments of the Teavana store will allow Starbucks to better segment their markets and customize their products to meet consumer needs. Tea bars and Tanana’s tea shops will target a more tea oriented consumer base, thus offering more product diversity and development than Starbucks’s current coffee shops.

While other tea bar alternatives exist such as “Culture Tea Bar,” in New York, Teavana will have little barriers to entry as there are few of such alternatives, and the strong support from Starbucks will allow for great brand positioning in the new market. With this market segmentation and product customization to new demands of customers, Starbucks will be able to become profitable in the new domain and bring an increased tea culture to Americans, just like it has with coffee.

Article available at:

http://www.ctvnews.ca/business/spiced-mandarin-oolong-tea-starbucks-to-open-tea-bar-in-new-york-city-1.1509591

Image available at:

http://ecoopportunity.net/wp-content/uploads/2011/05/starbucks-logo11.jpg

For a company to survive and thrive past its early stages of development it must establish and maintain a competitive advantage. While many companies in today’s economy base this advantage on a reduced cost, a Romanian shoe company proposes a different value proposition.

The company, produces and sells shoes of over $1690, and lately, the demand for they service has increased by 15%-20%. By using fine materials and the skill of 19 trained shoemakers, Saint Crispin’s produces handmade shoes to a select amount of individuals. With this narrow target market and product uniqueness, it is evident that the company is focused on product differentiation. Although the cost of products is high, Saint Crispin’s holds a sustainable competitive advantage in its target market. This is accomplished by manufacturing a product that cannot be easily replaced or replicated.

In addition, the company offers a continued promise to its customers by retailing its products through a specific set of shoe distributors chosen and trained by Saint Crispin’s. By means of this selection a level of customization unavailable from other retailer brands is achieved. The sustainable advantage from product uniqueness that is provided by Saint Crispin’s allows the company to grow and develop regardless of price.

Article can be viewed at:

http://www.bnn.ca/News/2013/10/11/1700-shoes-for-the-well-heeled-man.aspx

Image can be viewed at:

http://www.theshoesnobblog.com/wp-content/uploads/blogger/-zgk2DZjSidY/TgrWsPxgCqI/AAAAAAAACOg/c3T4ZKWqRAw/s1600/105.jpg

Growing up as a child in the 21^st century is substantially different than many years ago. As many know, children in this new “information,” era, are exposed to over thousands of hours for television per year, and many of this time is consumed by advertisements. But when do ads directed at children become unethical, and pure immoral?

While a study conducted in the US, has shown that around 300 fast food ads are broadcasted and received by children between the ages of 2-11 every year, more than 50% of those ads are from a single corporation; McDonald’s. While the bottom line of a company should be to maximize profits in terms of Friedmans’s theory, explicitly advertising unhealthy and unnatural food to children in order to increase revenues is unethical and incorrect. By displaying these advertisements that target children with the use of bright colours, animated characters and speciality “Happy Meal,” prizes, McDonald’s is solely focusing attention on increasing revenue, while completely disregarding the potential harm done to society and the children within it.  In order to account for aspects of social well-being McDonald’s must reorganize and redesign its marketing strategy, but this will eventually lead in a decrease of potential sales. The question still lies, “Is it ethical for a company to solely strive to maximize profits?”

Article can be viewed at:

http://www.businessweek.com/articles/2013-11-13/happy-meals-with-mcnuggets-dominate-

childrens-advertising#r=hpt-ls

Image can be found at:

http://images2.wikia.nocookie.net/__cb20130603185419/logopedia/images/b/ba/Mcdonalds_logo.png

Auditors have the responsibility to review and verify a company’s outgoing information about sales, revenue and other business operations. While as a society, many hope that fraudulent reporting would not exist, this is not the case. But the question arises regarding the auditors who perform the in-depth examinations on numerous companies.

This question is examined in Ben Dipietro’s “Accountants Should Focus on Detecting Fraud, Experts Say.” While relating to the core responsibilities of an auditor, it is shocking to discover that less than 1% of the CPA exam focuses on fraud and fraudulent reporting. And as the number of fraud cases increasing every year, it is impossible to believe that a lack of fraud detection training is still prominent within the CPA program. Another interesting fact brought forth is the notion that many auditors lack experience in detecting motivation and signals leading to the detection of fraud. This lack of emphasis and training of fraud detection will eventually lead to a large financial problem if it is not addressed. While our world grows and develops it is important for restrictions and regulation to be maintained in order to create a safe and ethical environment for business and individuals. For this reason it is crucial that auditors and financial accountants receive the necessary training and experience to preform well in their deemed responsibilities.

Article can be view at:

http://blogs.wsj.com/riskandcompliance/2013/10/09/accountants-should-focus-on-detecting-fraud-experts-say/

Image can be viewed at:

http://www.desaiassociates.ca/files/website/accounting-and-finance.jpg

Many new, start-up software companies provide a new and innovative organizational culture to the whole team of employees. This low formalization and “flat,” pyramid of management promotes creativity, efficiency and ultimately it is know to increase job satisfaction. Whereas in conventional organizational cultures, many different set of managers exist that are all responsible for the employees below them, in this “flat,” organization design, there are far fewer communication and position levels between management and employees.

Google is a company that utilizes this organizational culture, as well as other quirky employee privileges, such as volleyball courts, restaurants and massage rooms in order to inspire innovation within employees as well as enable an incredible employee satisfaction. But are these methods paying off in terms of profit and employee satisfaction?

Bianca Pinasco argues in her article Best workplace in the world, that indeed, Google’s methods provide a desirable outcome, making the company “one of the most profitable in the world,” but at what costs. Studies show that Google has an unexpectedly low tenure for employees at about 1 year. Being considerable less than many similar organizations, it is evident that Google is not meeting the demands of its particular staff members and as such, the organization must change its internal operations as to further meet the demand of its employees.

While this issue is overshadowed by the enormous profit accumulated by Google, a lack to change culture and promote a higher employee loyalty may lead to the demise of the internet giant in the future.

Article “Why are Google Employees so Disloyal?”

http://www.bloomberg.com/news/2013-07-29/why-are-google-employees-so-disloyal-.html

Bianca Pinasco’s Blog:

https://blogs.ubc.ca/biancapinasco/2013/11/09/the-best-workplace-in-the-world/

Picture can be viewed at:

http://www.bloomberg.com/image/iCGI8fuw9BJw.jpg

Many views exist around the topic of ethics and ethical practices in any business venture. While some prefer the Friedman view that focuses only on company profit, other business models plan to operate based on specific ethical practices such to increase social well-being. As well, there are some companies and service providers that utilize a shared value in order to create a profit as well as bring good into society as a whole.

Although there are many different alternatives when deciding a strategy for a business when considering ethics, many problems and set-backs can occur just as Brooke Besley discussed in her article about Business Ethics. In relation to these possible issues that arise when taking into consideration ethical practices, I strongly believe that the most beneficial plan of action for any business is the Friedman approach.

Following this approach, businesses will be able to fulfil their most important responsibility to society, that of making maximum profit, and as outline is Brooke Besley’s article, this approach will deter the corporation for any future set-back when trying to incorporate a different ethical structure. The Friedman approach to a business will encourage the company to focus on increasing profits, and this system of thinking can eventually lead to practices that can be more or less ethical, but regardless, the company will have met its number one social responsibility; the maximization of profits.

Brooke Besley’s Blog

https://blogs.ubc.ca/brookebesley/2013/09/11/business-ethics/

Image can be found at:

http://www.distributedrepublic.net/port/images/miltonfriedman.jpg